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New FATCA Requirements in 2015



FATCA (Foreign account tax compliance act) is new legislation brought in by the United States as a way to prevent US tax evasion. FACTA is part of UK law and It is important that all financial institutions in participating countries comply .Failure to do so may result in large fines and potentially some sanctions that prevent them from trading in the future.

What are the requirements?

Ahead of the FACTA return deadline on 31st May 2015 there are some changes to the reporting criteria

Financial institutions in the UK will no longer have to file nil returns

However, if a financial institution is in a nil return position as a result of applying the minimum $50,000 or $250,000 threshold on pre-existing accounts, they will still need to send in a return.

If you are a holding or treasury company, you are not required to report under FATCA, as these types of companies are not defined as financial institutions any more. Going forward they will be classified as Non-Financial foreign entities (unless they come under one of the other financial institution definitions).

How to Register

In order to submit a FACTA return, details will need to be registered by 31 May 2015. A government gateway account under ‘organisation’ will need to be created and you will then be able to register for FACTA under one of the listed services. It is important to remember that you must register 24 hours before sending off your FACTA return. Full guidance on how to submit FACTA returns can be found here.

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